Why is Lakshmi Engg. falling/rising?

Jul 08 2025 09:22 PM IST
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As of 08-Jul, Lakshmi Engineering & Warehousing Ltd's stock price is 2,340.00, having increased by 1.96% today. Despite short-term gains, the stock has underperformed over the past week and year, with poor long-term growth prospects and declining investor confidence.
As of 08-Jul, Lakshmi Engineering & Warehousing Ltd's stock price is currently at 2,340.00, reflecting an increase of 45.0, or 1.96%. Today's price summary indicates that the stock opened with a gain of 2.15% and reached an intraday high of Rs 2373.2, which is a rise of 3.41%. However, despite this positive movement today, the stock has underperformed over the past week with a decline of 2.50% and a year-to-date drop of 4.45%. The company's long-term growth prospects appear poor, as evidenced by a significant decline in operating profit over the last five years and a return on equity (ROE) of only 3.9%. Additionally, the stock is trading at a premium compared to its peers, which may deter potential investors.

In the broader market context, while the stock has shown a positive movement today, it has underperformed the benchmark index, the Sensex, which has gained 0.02% in the past week. Over the past year, Lakshmi Engineering has generated a return of -9.06%, contrasting sharply with the Sensex's increase of 4.69%. This underperformance is compounded by a significant drop in investor participation, with delivery volume falling by 75.12% against the five-day average, indicating a lack of confidence among investors. Overall, while there are short-term gains, the long-term outlook remains concerning, contributing to a mixed sentiment around the stock's performance.
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